Regulator tells Singapore Exchange to improve outage recovery process
21 March 2017 | 5235 views | 0
The Singapore Exchange has been told by the country's financial regulator to improve its recovery processes following an investigation into an outage last year which shut down trading for an entire day.
SGX suffered the disruption last July, when a malfunction caused by duplicated trade confirmation messages halted trading in blue chip stocks for several hours.
The Monetary Authority of Singapore (MAS) criticised the exchange for failing to restore its critical systems within four hours, as required by the central bank.
Since the incident, SGX has formed an industry working group, which has identified several areas for the exchange to improve, including restoration of corrupt data, market recovery procedures, and incident communication.
SGX has agreed to make the changes and will contribute $1.5 million to co-fund the costs that may be incurred by brokerage firms.
Ong Chong Tee, deputy MD, financial supervision, MAS, says: “MAS takes a serious view of trading disruptions. Technology system-related breakdowns can never be zero-probability occurrences and this is why SGX should strengthen its recovery process."